Malls just for jewellery? Yes, they too are coming
A few of years ago, Mumbai-based Vardhman Developers bought the “Cotton Exchange” building, situated in the heart Zaveri Bazaar, the famous jewellery market.
Several companies have lined up plans to tap Indians’ love for jewels and diamonds
MUMBAI: A few of years ago, Mumbai-based Vardhman Developers bought the “Cotton Exchange” building, situated in the heart Zaveri Bazaar, the famous jewellery market.
Then, the company had no idea about what it would do with the new property.
Rajesh B Vardhan, managing director, Vardhman Developers, soon began to wonder why Zaveri Bazaar was losing its charm. Not a single global brand had presence there. “What if we provide a better and cleaner ambience for these shops, I thought?” said Vardhan.
Renovated, installed with several safety features, well-lit and air-conditioned, this place will now be called Jewel World, Mumbai’s first jewellery and gems mall.
This is not just about Zaveri Bazaar adorning the colours of the “mall culture” but it also reflects just how crazy branded jewellery boom can get.
Vardhman Developers have also plans to build four gems-and- jewellery malls in Mumbai under the Jewel World brand.
The first one will house around 70 shops with a mix of retailers, traders and wholesalers and on the offering will be a wide variety of brands for the customers. The concept is similar to Gold Souk in Dubai.
The wave of speciality malls is gradually on the rise. The concept of speciality mall is emerging beyond premium-segment malls or interior furnishings ones. And a jewellery mall seems like the next big thing because experts believe that the buying capacity of consumers has increased almost thrice in the past few years and by 2013, India will become the biggest consumer of jewellery.
A study by McKinsey by 2010 said the branded jewellery market would touch Rs 10,000 crore.
Similar to Vardhman Developers, Musaddilal Jewellers — which has been involved in the jewellery business for six generations — launched a jewellery mall in Hyderabad in November 2007. Its plans to invest Rs 1,500 crore to boost its presence across the country. Gold Souk India, too, has plans for bringing 100 Souks (big format malls with separate zones for sports, kids, jewellery and so on) in 100 months. Two Gold Souks are operational in NCR and another is coming up in Jaipur.
Ashish Gupta, joint managing director and vice-president, Gold Souk India, said: “We get 80% conversion rate at these malls where footfall of 2000 a day is the very focused kind, out there only for the purpose of shopping. A group of best retailers in Kundan, yellow gold, diamonds or even Siliguri jewellery are present in these malls.”
Gitanjal Gems Ltd has also opened its first luxury jewellery mall in Gurgaon, where a number of international brands have started their retail business.
“One does not want an ice cream vendor or a sports shop next to a high-end jewellery store. The ambience and environment required need to be completely peaceful and calm when a person is preparing to spend huge amount of money. These malls have enormous potential and they become like this jewellery hub, adding substantial amount of value to high value products.” said V Suresh, principal executive, Shirco, who was earlier with Gold Souk as director, corporate finance.
In a country where love for jewels and diamonds is very old and well-known, the new-found affinity for malls makes selling them an irresistible proposition.